Gold approaching $2,000 an ounce

Just two weeks ago, we wrote here, “Gold edging towards $1,700 an ounce”. Last week, it has topped the $1,800 mark. While platinum and silver also showed rising trend in prices recently, they did not exhibit the fast rise in prices of gold. The continued uncertainty in the debt and financial market worldwide seems to be moving in step, in direct proportion, to the trend in gold prices.

Since among the biggest economies of Europe like France, Italy and Spain, are wobbling between economic stagnation and depression, ie, between a near-zero growth to negative change in output, by virtue of their high public debt like what is happening in the US, the financial uncertainty seems to be rising instead of mitigating. Gold and a few other commodities and currencies are the new destination for many investors who want to see some stability, or at least lower losses, for their investments. A $2,000 an ounce price for gold is not far from today.